Through your current broker viz. Zerodha, Angel broking, Upstox, etc. If you don’t have an account, we will assist you with creating and running it.
Not needed. But you can monitor the trades we conduct on your behalf by simply logging into your demat account and checking the positions taken.
Yes, but it is advisable to allow the algorithm to run on its own. Sometimes, seeing a loss is just a smokescreen for the huge profit that follows which might be missed when you exit a strategy halfway through.
Correct, the moment your returns during one year from your start date fall below 18% p.a. on a pro rata basis, we will aim to generate returns more than 18% p.a. pro rata basis before we charge you performance fees.
Example 1
Suppose you have asked for quarterly settlements. That means within the quarter, 4.5% profit is the hurdle rate. Let us assume the profits within the first 3 quarters were 8%, 4%, and 10%.
For the first quarter, from 8% profit, the hurdle rate 4.5% is subtracted, leaving 3.5%. This 3.5% is divided evenly (50% profit sharing) at 1.75% each. Therefore, for the 1st Quarter;
You receive 4.5% + 1.75% = 6.25%; whereas Chatur Wealth will receive 1.75%
For the second quarter, from 4% profit, the hurdle rate 4.5% is greater. Therefore,
You receive 4% profits, whereas Chatur Wealth will not receive any returns
For the third quarter, from 10% profit, the hurdle rate would be 4.5%. The remaining 5.5% is divided equally at 2.75% between you and Chatur Wealth. Therefore,
You receive 4.5% + 2.75% = 7.25%; Chatur Wealth will receive 2.75% of the returns.
Example 2
Similarly, for half-yearly settlements, the hurdle rate will turn out to be 9%; If the returns are amounting to 12% and 18%,
For the first half, you will receive 9% + 1.5% = 10.5%; Chatur Wealth gets 1.5%
For the second half, you will receive 9% + 4.5% = 13.5%; Chatur Wealth gets 4.5%
Yes, you can but additional funds will be deployed at the start of the next month.
Yes, you can. View your trades by logging into your demat account and checking your positions.
Yes, you have the option of pledging your long term stock portfolio for a margin which gives you the comfort of not liquidating your long term investments while at the same time providing extra money for the algo to run simultaneously. If you choose to pledge your long-term stocks, you would only need 10-20% of the pledged margin received as a buffer for mark to market.
The profit generated from algo-trades through Chatur Wealth will come under business income. You can claim expenses like mobile bills, electricity bills, hotel bills, etc. so that your tax liability on this business income is reduced substantially. It is recommended to still consult with your CA for better clarity. But, most of our clients are treating this as a business income and claiming expenses against it, so that the tax liability is reduced. The fees paid to Chatur Wealth can also be claimed as expense.
In order for a strategy to be considered successful, it must be profitable after brokerage and implementation fees are applied. But very few strategies can fulfill the criteria mentioned.
- Chatur Wealth focuses on optimizing trades by reducing the number of trades each strategy takes while also ensuring the strategy is constantly adapted to varying market conditions which helps us to reduce brokerage and other costs.
- Chatur Wealth has an array of premium back-tested high-profit strategies exclusive for the clients who have handed over the responsibilities of facilitating their trading accounts to us.
- Chatur Wealth provides one of the largest hurdle rates (18%) offered globally. This hurdle rate ensures our advantage over mutual funds, PMS, hedge funds and FDs.
- Paper Trade Performance
- Live Auto Performance
- Paper Trade Performance – Paper Trade accounts act as a demo which reflects the P&L statistics as though the investment has been made. These are on-paper trades; where no amount is necessary and no profits/losses are generated. This performance can act as a demo before you pursue investment in a specific strategy.
- Live Auto Performance – Live execution of strategies via specific platforms that facilitate algorithmic trading.
Affiliation for brokers
Advice for choosing broker- We have observed Zerodha gets the least amount of Tradetron order execution errors followed by AngelOne.
1) Zerodha
Pros:
- Best in class API
- No 1 broker in India
- Least number of errors
Cons:
- 2000 Rs/month for APIs.
- 20 per order
- Doesn’t allow far OTM hedges sometimes.
2) AngelOne
Pros:
- 20 per order
- Zero monthly fixed fees
Cons:
Number of errors are more frequent than most
Hope we build a sustainable long relationship. Our motto “Making Wealth is Now Easy” encourages us to look for funds that need investing and growth.
It depends on you.
- Variable Fee Structure is for those clients who don’t want to pay anything to Chatur Wealth before the hurdle rate has not been reached. For these clients, we generally pause the strategies for the month once a 5% return has been achieved.
- If you feel that you want to execute trades even after our 5% target for the month has been reached, it is beneficial for you to pay a fixed fee to us rather than sharing your profits over the hurdle rate.
- You also have the discretion to switch strategies in the middle of the month or to deploy the strategy for a day and pause for another day which is not allowed in the variable fee structure.
For any further queries please feel free to contact us through email at info@chaturwealth.com or you can call us at +91-9820765679/+91-7081746145